A reserve price, is the minimum amount a seller is willing to accept for an item in an auction or sale. It represents the lowest price at which the seller would be comfortable completing the transaction.

Alternative names for Reserve Price

• Minimum acceptable price (MAP)
• Reserve bid
• Floor price
• Minimum bid price
• Hidden minimum
• Secret reserve

These terms are used interchangeably across different markets and auction platforms, though "reserve price" remains the most commonly used term in most situations.

Key points about reserve prices:

• The reserve price is typically kept hidden from potential buyers
• If bidding doesn't reach the reserve price, the seller is not obligated to sell
• It helps protect sellers from having to sell items at unfavorably low prices
• Reserve prices are commonly used in both traditional and online auctions

Why Use a Reserve Price?

Sellers use reserve prices to:

• Protect their investment in valuable items
• Ensure they receive fair market value
• Generate excitement in bidding while maintaining a safety net
• Balance the desire for competitive bidding with minimum acceptable returns